Microsoft eyes 10 million Xbox target

Microsoft says it is still on target to ship 10 million Xbox 360 units this year, according to figures released as part of its financial results.

The company says it has so far sold six million games consoles in 2006.

The total figure has only risen by one million units since Microsoft announced five million sales in July, but the company is confident as it heads into the traditionally busy Christmas period.

However, the Xbox 360 will face competition next month from Nintendo's cheaper Wii console, which is released worldwide, as well as Sony's Playstation 3, which makes it US debut in the same month.

Sales of Microsoft's next-generation games console have helped its Entertainment and Devices Division increase its revenue by 70 per cent year-on-year.

A company statement said: "This was driven by demand for Xbox 360 consoles, software, peripherals and Xbox Live."

Xbox Live, Microsoft's online gaming service, passed the four million subscriber mark.

Overall, Microsoft posted an 11 per cent rise in profits for the period ending September 30.

The company had an operating income of $4.47bn (£2.36bn), from $10.81bn (£5.71bn) total revenue.